- Questions have arisen about the SEC's stance on virtual currencies.
- The resignation of an SEC lawyer amid criticism highlights challenges in enforcing crypto regulations.
Increased regulatory oversight in the crypto space has gained momentum since Ripple [XRP] case. Now that companies like Coinbase, Uniswap, and Tornado Cash are under SEC scrutiny, questions arise. Is the SEC trying to rein in the cryptocurrency industry with its policies?
Jake Cherbinski, chief legal officer at Valeant, highlighted the disagreement between the SEC and Coinbase in a recent stream on Unchained. He said,
“Having an answer to this question is really important to understanding where the SEC's jurisdiction begins and ends in the context of cryptocurrencies.”
looming uncertainty
However, it is interesting to note that legal decisions regarding the classification of tokens as investment contracts are inconsistent. For example, in the Ripple case, Judge Torres issued a different ruling than Judge Failla, creating uncertainty about the legal status of tokens.
Amid heightened uncertainty, Bloomberg recently announced the resignations of two SEC lawyers. This comes after a federal judge sanctioned and harshly criticized Wall Street regulators for “serious abuses” of power in crypto cases.
Michael Welsh and Joseph Watkins resigned from the SEC this month, according to Bloomberg sources. They were the lead attorneys in the case against DEBT Box, but were told they would be fired if they did not resign.
This highlights the complexity and challenges in enforcing regulatory policies in the cryptocurrency space.
Regarding the judge's recognition of the SEC's actions and future litigation involving the SEC and the crypto industry, Chervinski said:
“I think it will cause irreparable damage to the SEC’s reputation. Many people in the cryptocurrency industry are celebrating this order because I think it will make all of us feel seen. , I completely understand that.”
In addition to the conflict, fluffyuser X (former Twitter) pointed out:
“SEC is cooked.”
Will things change after the election?
As the US elections approach, Chervinski is completely uncertain about how the Biden or Trump administrations will affect domestic cryptocurrency regulation. He said,
“Rather than leave us all in this limbo of regulatory uncertainty, I think it's time for Congress to step in and decide what the law should be.”
Furthermore, in a separate interview, Ripple CEO Brad Garlinghouse expressed his opinion on the Washington government's intentions regarding cryptocurrency regulation, stating:
“We're seeing legislative progress in Dubai, Singapore, even the UK and the EU. The US is really '8 ball behind' when it comes to cryptocurrencies.”
inside the x post He further stated:
“The United States will continue to address some of the agency's disastrous policies long after Mr. Gensler is gone.”
